Remember when you say Iraq was paying for all of their major construction at 1310 you'll see...payments were able to disperse out of the DFI fund...Food, currency exchange programs, electricity, oil infrastructure programs, equipment for Iraqis, equipment for security forces, civil services, salaries, Ministry of budget operations - that's a broad spectrum...
They had a lot of things that they could tap into that oil money revenue stream dollars [DFI}. It wasn't in dinars.
Things have changed now...They have a time crunch...Since the DFI has gone into the Iraqi2 Fund you're going to see big changes I'm excited to see...
Article quote "Al Sudani uttered a very important phrase, 'keep the dinar...I bear witness that the Iraqi dinar will return to its lofty economic value as it was'..." Lofty economic value is not 1310. It's not 1159. It's not 1182 or 1160 or any of those number. It's back to previous era like they said.
They shut this thing down at...$3.22...The true value from the IMF...estimates were about $2.80. Those are their words not mine and in print...They can support it...Remember, Iraq was at $35 a barrel of oil. It's $85 right now. Then add in all the extra revenue streams that we know of...They're massive and they're just going to keep growing.
The Capital Intelligence Credit Rating Agency confirmed its credit rating of the long-term assets of the Iraqi Islamic Bank for Investment and Development (BIIB), listed on the Iraq Stock Exchange, denominated in foreign currencies, at “B-”, with a stable outlook.
The agency added in a research note on its official website that it maintained the bank’s short-term foreign currency-denominated asset rating (ST FCR) at “B.”
The agency maintained the independent bank’s rating at “b-” with a stable outlook, the fundamental financial strength rating at “bb-” and the exceptional support level at “uncertain.”
The bank’s ratings within the country’s borders also remained at “iqBBB+” for long-term investments and “iqA2” for short-term investments, with a stable outlook.
The bank enjoys a good level of profitability in 9 months of 2023, a strong capital base, and a high level of liquidity supported by the growing customer deposit base and representing credit strength.
On the other hand, the agency pointed to the major credit challenges facing the bank, as is the case with the rest of Iraqi banks, due to the economic and political weaknesses in Iraq despite the current oil prices, as well as the concentration in assets and customer deposits, and the relatively small balance sheet and market share.
In addition, the bank faces high rates of non-performing financing despite the improvement and the weak regulatory and supervisory framework.
Despite the bank’s relatively small balance sheet, it has nevertheless succeeded in expanding assets and customer deposits in recent years, and there remains a significant degree of concentration risk inherent in the balance sheet.
We are just waiting for the “giant” leap when the CBI gives them the second rate change. This should bring in much if not all the remaining capital outside the banking system back to the banks that need it desperately for the economy to grow. This second rate change should coincide with the project to delete the zeros.
We know it is the in-country rate needed to support the Project to Delete the Zeros as the next steps and, by design, it is to retrieve all this stashed currency and get it into the banks from the hordes in the Iraqi homes. Common sense then dictates to us that the only way they will be successful in these next steps is to raise the program rate higher over the dollar to create an incentive for this purpose. This will be the second rate change we have been told would occur and have been waiting for.
But remember that with these next steps, this is still in the “program” rate and for in-country only. We will still NOT be able to exchange our dinars outside Iraq until the reinstatement which follows the Project to Delete the Zeros... there is much work to be done yet before we go off to the bank to exchange...So now, we are just waiting for the “giant” leap when the CBI gives them the second rate change. This should bring in much if not all the remaining currency back to the banks that they need desperately for the economy. This second rate change should coincide with the project to delete the zeros...
Shafaq News/ Prime Minister Muhammad Shiaa Al-Sudani considered, on Thursday, the meeting that he will have with President Joe Biden during his upcoming visit to the United States of America in mid-April “will be an opportunity to put the American-Iraqi partnership on a new and more sustainable basis.”
This was stated in an article published in “Farn Affairs” magazine, today’s issue.
“Our discussions will emphasize the continuing importance of our economic relations, cooperation in combating money laundering and terrorist financing, and the use of political and diplomatic tools to defuse regional tensions,” he wrote in his article.
He added, “The war against terrorism will remain a central topic for our governments,” adding, “We recognize and appreciate the critical role played by the United States and other members of the international coalition to combat ISIS in defeating terrorism.”
Al-Sudani added: This support has helped Iraq achieve stability, make great strides on the path to democracy, the rule of law, and ensure the government’s monopoly on the use of force.
He continued, “The time is right for our relationship to become broader, while recognizing the growing capabilities of our forces to defend Iraq and ensure the safety of its citizens – and to contribute in essential ways to building a prosperous and stable Iraq.”
The Iraqi Prime Minister concluded his article by saying that the relationship “in its new form, our partnership can represent a source of mutual benefit for both our countries, and a driving force for achieving stability in the Middle East.”
FIREFLY:Television is talking about Sudani's trip to Washington. They saying high security and military personnel will accompany him...It looks like we're going to go this time with a completely different exchange rate.
FRANK: My hope and prayer is he will talk to you about your new exchange rate because it is time to do so. He has given you every hint...every scenario...every option of why you're about to have a new value to your currency, about why your currency will be more valuable than the American dollar...I am sitting...in great hope he will make an announcement that will add purchasing power to your currency and then go to Washington with that power representing him as the leader of Iraq, a free sovereign nation and not the loser of a program rate country with sanctions upon him.
Have not seen any of it on the news today about the lower notes that are going to be distributed in May...However there are a lot of rumors saying it was something out here today. We have not seen yet but we are looking...
FRANK: There are many rumors about the monetary reform right now. Yes there seems to be a rumor about the lower notes...let's see what happens this coming week. Let's see how things start to unfold.
FIREFLY: Ramadan is over on the 8th. Then we have EID holiday from the 8th to the 14th and then on the 15th Sudani is supposed to go to Washington D.C...It's time to get a little excited...
FIREFLY: The foreign minister already in USA is a prelude to Sudani grand stand that's coming April 1st, our new fiscal year.
FRANK: So much is now pointing for your 1st quarter. April the 1st or maybe the first week of April especially with Sudani going to see the President of the United States in Washington DC on the 15th of April. It seems to me he's going to go see the president with a new exchange rate under his belt...not the weak leadership of a program rate.
FIREFLY: TV is say when Sudani goes to Washington. OMG that's a long time off. Means nothing changing until after that probably, if it does this year.
FRANK: I don't care if it happens on the 15th of April. I don't care if it happens tomorrow. I just know it's happening with all that we're seeing. The proof is there. There's no doubt about it.
FIREFLY: Tv talked about parliament finance has been meeting...with the CBI officials talking about mechanisms to pay the salaries and all the project we have. This is a good sign. They are meeting right before the budget goes to parliament next week.
FRANK: Firefly knows if it does go to parliament and they vote, it will expose an exchange rate. Certainly not a program rate.
FIREFLY: Talked to bank friend. He told me it seems to be the quiet time but soon news on the amending budget will appear...Nothing will get done, so it's going to be soon. The dropping of the zeros is off the exchange rate...We were told on TV that during next week the 2024 amended budget will arrive at parliament for their vote.
FRANK: Stay very close to your friend because at any moment IMO I believe he'll be able to give you what you're looking for, what they promised you.
